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A rental investment can be a safe haven in a volatile market.

Few people talk with their financial advisors about alternative investments like purchasing a property, but real estate may be a good strategy this year. It’s one that more high net worth investors seem to be employing to cope with market volatility.

A December 2018 survey from Millennium Trust Company found an increasing preference for alternative investments, including real estate. Among those surveyed who held real estate, 73 percent favored single-family rentals.

Real Estate and Rising Interest Rates

Robert Mulcahy, senior vice president of production and strategic initiatives at Angel Oak Prime Bridge in Atlanta, says a rental property investment is a great strategy for any investor, regardless of net worth. The market gyrations of 2018 and the outlook for real estate in the year ahead are compelling reasons to examine the benefits of owning a rental property.

“Since markets don’t exist in a vacuum, there tends to be a beta between the rental market and the stock market,” says Jason Haber, a real estate agent at Warburg Realty Partnership in New York. The difference, he says, is volatility.

“The rental market is reactionary to the general direction of the stock market,” Haber says, meaning that daily swings in stock prices don’t effect real estate investors like equity investors. “Real estate investments provide for more stability, and many markets can outperform the Dow and S&P 500.”

That may be music to the ears of volatility-weary investors. Here are three reasons why now is the perfect time to consider a property investment:

  • The 2019 outlook is strong.
  • Housing is bolstered by low unemployment.
  • Renter profiles are shifting.

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